Scope: This guide covers individuals registered for Self Assessment who receive self-employment or property income. It reflects HMRC’s staged rollout current on 9 September 2026 and does not cover VAT or Corporation Tax.
The short answer
Making Tax Digital for Income Tax applies to an individual registered for Self Assessment who has qualifying self-employment or property income above the threshold for the relevant start year.
The current stages are:
| Earlier Self Assessment return used for the test | Qualifying income | MTD start date |
|---|---|---|
| 2024 to 2025 | More than £50,000 | 6 April 2026 |
| 2025 to 2026 | More than £30,000 | 6 April 2027 |
| 2026 to 2027 | More than £20,000 | 6 April 2028 |
The wording is “more than”, not “at least”. Use HMRC’s qualifying-income method and the identified earlier return year rather than comparing a start-year profit with the threshold.
Who needs to use MTD for Income Tax
The core test concerns an individual who is registered for Self Assessment, receives income from self-employment or property, or both, and has qualifying income above the relevant threshold.
The threshold is not a general total-income threshold. Employment pay and other amounts are not automatically substituted for the self-employment and property qualifying-income test. Use HMRC’s official eligibility and qualifying-income guide for the sources and return figures that count.
HMRC reviews Self Assessment returns and writes to people whose qualifying income is above the applicable threshold. From September 2026, HMRC is also starting to sign up people it identifies as required to use MTD for 2026 to 2027 who have not already signed up, where its records show qualifying income above £50,000 in 2024 to 2025. If HMRC contacts you, follow the instructions it provides. A person who has not been contacted remains responsible for checking and signing up when required.
How the staged thresholds work
The start date is linked to qualifying income in an earlier return year. For example, the more-than-£30,000 test for a 6 April 2027 start uses the 2025 to 2026 return year. The more-than-£20,000 test for a 6 April 2028 start uses 2026 to 2027.
Example: two income sources
Ravi is a sole trader and landlord registered for Self Assessment. His qualifying-income calculation for 2025 to 2026 combines the self-employment and property amounts that HMRC says count and produces £34,000. Because this is more than £30,000, the staged table points to a 6 April 2027 start, subject to the full eligibility and exemption checks.
This example illustrates the threshold timing only. It does not verify which figures belong in Ravi’s qualifying-income calculation.
Example: exactly on a threshold
Mei’s correctly determined qualifying income for 2025 to 2026 is exactly £30,000. The published stage for 6 April 2027 says “more than £30,000”, so that stage is not triggered by equality alone. Mei still checks later years and any change in HMRC guidance.
What changes under MTD
Someone within MTD for Income Tax needs compatible software to create, store and correct digital records for the relevant self-employment and property income and expenses, send quarterly updates and complete the tax-return process.
The broad workflow is:
- Choose and authorise compatible software.
- Maintain digital records for each relevant income source.
- Send quarterly updates through the software.
- Add other reportable income and complete the tax return through the software.
- Submit and pay by the applicable Self Assessment deadline.
Quarterly updates do not replace the tax return. HMRC’s operational guide says one return is still submitted for each tax year and the tax bill remains payable by the applicable 31 January deadline.
The first-year timetable
For someone using MTD for Income Tax in 2026 to 2027, HMRC gives these deadlines:
- first quarterly update: 7 August 2026 — now passed;
- second quarterly update: 7 November 2026;
- third quarterly update: 7 February 2027;
- fourth quarterly update: 7 May 2027; and
- the 2026 to 2027 tax return and payment: 31 January 2028.
HMRC says it will not apply penalty points for late quarterly updates for the 2026 to 2027 tax year. The quarterly updates are still required and must be sent before the tax return can be submitted.
Digital records and software preparation
Do not wait for the first update period to test the workflow. Check whether current bookkeeping software is compatible, how bank or sales data will enter it, how property and self-employment sources will be separated and how corrections will be made.
A spreadsheet may form part of a digital process only where the complete setup meets HMRC’s software and digital-record requirements. Confirm compatibility rather than assuming any electronic file is sufficient. Keep source documents and a clear audit trail behind the digital totals.
Exemptions
HMRC provides a checker that says whether and when a person needs to use MTD for Income Tax and whether they may be exempt. Its guidance gives digital exclusion as one possible exemption reason. If exempt from MTD for Income Tax, the person still reports income and gains through a Self Assessment return.
An exemption is therefore not an exemption from Income Tax or Self Assessment. Use HMRC’s official exemption route; do not simply stop digital reporting because software is inconvenient or a letter was not received.
A preparation timeline
For a future start date:
- confirm the relevant earlier return and qualifying-income figure;
- run HMRC’s eligibility and exemption check;
- decide whether an agent will act;
- choose compatible software and authorise it;
- organise each self-employment and property source;
- test records and corrections before the mandated start; and
- keep the ordinary Self Assessment return and payment dates in the calendar.
For someone already within the 6 April 2026 stage, use HMRC’s current sign-up and operational guidance now rather than following a generic future-year checklist.
Common mistakes to avoid
- Comparing the threshold with profit or total household income without applying HMRC’s qualifying-income method.
- Using the wrong earlier return year for the start-date test.
- Assuming property and self-employment are tested as unrelated obligations.
- Treating quarterly updates as a replacement for the annual tax return.
- Buying software before checking that it works with MTD for Income Tax.
- Treating an exemption from MTD as an exemption from Self Assessment.
What to do next
- Use HMRC’s checker to confirm whether and when MTD applies and whether an exemption may be relevant.
- Identify the correct earlier return and qualifying-income amount.
- If in scope, follow HMRC’s preparation and sign-up route.
- Choose compatible software and test the record flow.
- Keep digital records, quarterly updates and the tax-return process distinct.
- Recheck the guidance before each staged start date.